It's 2025, and the global landscape is undergoing a significant transformation. Traditional tactics like threats of tariffs and sanctions are losing their influence, as nations seek new paths toward cooperation and mutual prosperity.
On his first day in office, newly sworn-in U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they continue their efforts to move away from the U.S. dollar. \"As a BRICS nation… they'll have a 100 percent tariff if they so much as even think about doing what they thought, and therefore they'll give it up immediately,\" he stated.
The Chinese Ministry of Foreign Affairs responded promptly, emphasizing that BRICS is not about confrontation but fostering collaboration and shared growth. The global community is increasingly skeptical of one-currency dominance and the efficacy of sanction-driven pressure.
Consider Russia's experience. Faced with extensive sanctions from Western countries in 2014 and 2022, many predicted economic turmoil. Instead, Russia developed its own financial systems, such as the System for Transfer of Financial Messages (SPFS) and the Mir payment card, effectively reducing its reliance on Western-dominated networks like SWIFT, Visa, and Mastercard. This strategic move insulated its economy and strengthened financial ties with nations like Türkiye, Kazakhstan, and various Middle Eastern countries.
Similarly, when the United States restricted Türkiye's access to technology and equipment, including F-35 jets and unmanned aerial vehicles, Türkiye invested in developing its own resources. Today, it not only meets its defense needs but also exports equipment to Middle Eastern and African nations.
These examples reflect a broader trend. Nations worldwide are striving for a more equitable global order. The G20 Summit in Brazil last year marked a historic moment with the African Union joining as a full member, signaling a shift toward inclusivity and a new vision for global cooperation.
BRICS nations are also redefining global trade by utilizing their own currencies for commerce, thereby reducing dependence on the U.S. dollar. Brazil and China now trade using their national currencies, a practice adopted by India and its regional partners as well. The BRICS New Development Bank is financing projects in local currencies, offering an alternative to traditional Western financial institutions. Additionally, efforts are underway to develop a blockchain-based payment system within BRICS.
This shift isn't a political statement but a pragmatic response to the vulnerabilities exposed by over-reliance on the dollar. Global financial crises like the one in 2008 and the recession induced by the pandemic have underscored the risks associated with a single-currency dominated system.
The world is embracing a multipolar approach to finance and trade, moving beyond threats and sanctions. Nations are seeking partnerships grounded in mutual respect and shared benefits, paving the way for a more resilient and inclusive global economy.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
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